What are the consequences of not reporting gifts on your benefits claim?
You may be committing fraud if you receive money as a gift and fail to disclose it on your benefits or loan application. This can result in severe consequences, such as the loss of benefits, a fine, or even a prison sentence.
Even if you are uncertain whether a monetary gift will affect your eligibility for benefits, you must report it on your benefits application. Your benefits may be adjusted accordingly, but failing to report a gift could reduce your benefits or even be considered benefit fraud.
Can you still receive benefits if you have personal possessions or notional capital?
Having personal property or fictitious capital may affect your eligibility for benefits. Personal possessions like jewellery, furniture, or a car are not considered assets when calculating your eligibility for means-tested benefits.
Notional capital refers to money you may receive in the future, such as an inheritance, but have yet to receive. This may be considered when determining your eligibility for means-tested benefits.
There are, however, exceptions to this rule. For instance, if you receive a disability living allowance or personal independence payment, your personal belongings and notional capital may not be considered when determining your eligibility for these benefits.
How much savings can I have on benefits?
How much savings can you have on Universal Credit?
If you have £6,000 or less in savings, they don’t affect your eligibility. However, if you have savings between £6,000 and £16,000, it will affect the amount you receive.
If your savings exceed £16,000, which is the Universal Credit savings limit, you usually won’t be eligible for means-tested benefits. There are exceptions, like the state pension and disability benefits, which aren’t affected by savings.